As a law firm specialising in company and insolvency law, we have come to extensively advise and represent in the field of managing directors’ liability.

Lawsuits and claims for damages against managing directors are constantly on the rise. At the same time, case law has expanded the obligations of managing directors for years. Liability risks arise not only in the tax area, but also in the context of company insolvency. As the amounts in dispute in company insolvency may well be considerable, this often constitutes a threat to a managing director’s own financial existence.

The managing director of a GmbH (limited liability company) must always act with the diligence of a prudent businessman in the affairs of the company. Should the GmbH become insolvent, there is a reason for insolvency. In this case, the managing director must file for insolvency in due time. Furthermore, the managing director is liable under insolvency law for payments that led to insolvency.